‘I’ll be staggered if we don’t find something’: Why this tiny ASX mining share is surging 20% today

Optimism about an imminent discovery could be boosting this ASX mining share.

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Key points

  • This ASX mining share has surged 20% today 
  • The company's chairman, an 18% shareholder, is rich lister Kerry Harmanis
  • Harmanis expressed confidence in the media the company is on the verge of "finding something" 

One ASX mining share is easily outperforming the S&P/ASX 200 Index (ASX: XJO) on Wednesday.

The Talisman Mining Ltd (ASX: TLM) share price is surging 20% at the time of writing and is currently trading at 18 cents.

So why is this ASX mining share having such a good day?

Optimism from chairman

Talisman Mining shares could be rising amid a positive outlook from the company’s chairman and rich lister Kerry Harmanis.

Harmanis established West Australian nickel miner Jubilee Mines in 1987 before selling it off to Xstrata for $3.1 billion in October 2007. And now, Harmanis is confident Talisman is on the verge of a discovery. Speaking to the Australian Financial Review, Harmanis said:

We are well on our way. I’m very confident.

I’ll be staggered if we don’t find something, or two, this year. 

Talisman is exploring copper and gold at the Lucknow Gold project and Lachlan Copper-Gold project. The company also receives royalties from the Wonmunna Iron Ore Project in the Pilbara in Western Australia.

Harmanis is a substantial shareholder in the company, holding 33,859,138 shares — that’s an 18% stake in the company.

In a quarterly report released in late April, Talisman highlighted it received $1.24 million in royalties from the Wonmunna project in the quarter.

Since March 2021, Talisman has gained $5.35 million in royalty payments from the project. The Wonmunna mine is owned by Mineral Resources Limited (ASX: MIN).

Talisman has more than $8.2 million cash in hand as at the end of the quarter.

Share price snapshot

Talisman shares have dropped nearly 20% in the past 12 months, while they are up 12.5% year to date.

For perspective, the benchmark index has climbed 2% during the past year.

The ASX mining share has a market capitalisation of about $33 million based on its current share price

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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